The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) Background and Coverage

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1 The Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) Background and Coverage

2 Uruguay Round: Negotiations on Agriculture Objectives to eliminate quantitative import restrictions Eliminate other non-tariff barriers (variable levies) Reduce tariffs Reduce domestic production subsidies Reduce export subsidies Establish sanitary and phytosanitary rules

3 Average weighted import tariff 40% > 4%

4 %?

5 Non-tariff measures Trade-related intellectual Property rights Technical barriers to trade Subsidies Quantitative restrictions Government purchase Trade in services Sanitary and phytosanitary measures 5

6 Agreement on the Application of Sanitary and Phytosanitary Measures The right to protect human, animal or plant life or health Avoiding unnecessary barriers to trade

7 What is the purpose of the SPS Agreement? establishes a multilateral framework of rules and disciplines to guide development, adoption, and enforcement of sanitary and phytosanitary measures applies to SPS measures which may, directly or indirectly, affect international trade 7

8 SPS Agreement - Basic Right Article 2.1 Members have the right to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life or health, provided that such measures are not inconsistent with the provisions of this Agreement

9 SPS Measures Definition - Annex A A measure taken to protect: Human or animal health Human life Animal or plant life A country from from from from risks arising from additives, contaminants, toxins or disease organisms in food, drink, feedstuff plant- or animal-carried diseases pests, diseases, disease-causing organisms other damage caused by entry, establishment or spread of pests

10 Examples: A measure to protect: Human or animal health from risks from additives, contaminants, toxins or disease causing organisms in food or feedstuffs Residue limits seafood Aflatoxin limits in nuts HACCP to reduce Salmonella

11 Examples: A measure to protect Human health from diseases spread by plants or als (zoonoses) requirement for rabies vaccination Avian influenza?!?

12 Examples: A measure to protect: Animal or plant health from pests, diseases, disease-carrying or disease-causing organisms Foot-andmouth disease measures Prevent spread of fruit fly

13 Examples: A measure to protect: The territory of a country from other damage from entry or spread of pests Prevent entry of Zebra mussels via ballast water regulate seeds to avoid entry of weeds

14 Important footnote: animals include fish and wild fauna plants include forests and wild flora pests include weeds contaminants include residues of pesticides and veterinary drugs, as well as extraneous matter

15 All types of measures with these purposes, including: product criteria quarantine measures processing methods certification inspection testing packaging, labelling (food safety) It is not the type of measure that counts, nor the products involved, but rather its objective! 15

16 SPS or TBT? SPS Measures human or animal health from food-borne risks human health from animalor plant-carried diseases animals and plants from pests or diseases examples: pesticide residues food additives TBT Measures human disease control (unless it s food safety) nutritional claims food packaging and quality examples: labelling (unless related to food safety) pesticide handling seat belts 16

17 Minimum size of fruit? Use of pesticides? Packaging?

18 Use of non-toxic materials for manufacture of bottle? Shape? Nutritional values (mineral content)?

19 Key Provisions of the SPS Agreement 1. Non-discrimination 2. Scientific justification harmonization risk assessment consistency least trade-restrictiveness 3. Equivalence 4. Regionalization 5. Transparency 6. Technical assistance/special treatment 7. Control, inspection and approval procedures

20 What have we covered... Historical Reasons for the SPS Agreement The SPS Agreement: Basic Right Coverage and Definition of SPS Measures The SPS Agreement: Key Provisions Non-discrimination Scientific justification: Harmonization or Risk Assessment Equivalence Regionalization Transparency Technical Assistance Control, inspection and approval procedures. Coverage of the TBT Agreement